The Hungarian forint firmed in a touch after the ECB meeting, which left its official rate unchanged and kept the interest rate differential between the euro-zone and Hungary flat another month. The weakening USD was probably another supportive factor. Thus, the EUR/HUF pair tested the 260.0 support at the end of the session. However, although EUR/HUF managed to dip below this key level for a while, it bounced back quickly and it has opened at 260.50 this morning.
Today, the forint will probably keep fighting with the 260.0 barrier, while the key market mover could be the US pay-rolls released in the afternoon. Should the US labour market point to more FED tightening, the forint might weaken. On the other, weaker-than-expected pay-rolls could trigger further strengthening of all CE currencies.
(CSOB - Investment research)